Finra suspended Adam C. Smith for one year and imposed a $10,000 fine for accepting gifts totaling $105,000.
Mr. Putnam was a key architect in the early days of the firm, overseeing its tremendous growth.
Frank H. Black and his firm, Southeast Investments N.C. Inc., failed to retain business-related emails and to achieve compliance with applicable securities laws, according to the Finra panel's decision.
Some affiliates say the firm is competing against them for recruits.
The firm will make a final payment to investors who bought promissory notes issued by MedCap, a $1.7 billion Ponzi scheme sold mainly through independent broker-dealers.
More than 20 claimants initially sought $8.8 million in damages and costs after a Morgan Keegan adviser allegedly misappropriated their funds.
Analyst calls it a "massacre" for some investors
Firm failed to send, or create records that it had sent to customers more than 1.6 million required account notices during the previous 36-month period.
Newly designed products and Blackstone Group's entrance into the industry could pump up the market.
